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Ratner Team are your local New York real estate experts for buying,
selling, leasing and investing in property in the Big Apple.

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and general contracting services.

This month we’ve seen bigger real estate moves in play, and see
developers marching on with new projects that will continue to
change the skyline and living trends over the next few years. Yet,
the data continues to show the market is changing.

In the commercial real estate headlines...

So right into what we all really want to know - what’s going on
with the real estate market?

While financiers still seem to be bullish on providing big
funding for New York real estate projects, developers just seem to
keep going and renters haven’t seen a massive windfall of truly
affordable units yet, the data continues to suggest the market has
plateaued.

Rents may still be strong for multifamily landlords and there
may be pockets of greater New York City with plenty of room to
grow, it may no longer be a matter of when the market pops again,
but how low it will go, and of course, how to make money in the
meantime.

According to coverage by
CNBC, the Manhattan property market has already been in a
correction for over a year. Some will stay say this is nothing like
2009. Yet, in the last quarter alone the Manhattan luxury real
estate market has seen sales prices drop by 12%, while inventory
grew 27%. New development sales fell 22%. Mortgage rates are
rising, affordability is an issue, mortgage fraud is up, and many
have been speculating. Are there really many more missing pieces
required before some Realtors admit the market has turned and looks
a lot more like the last bubble than anyone has been saying? If
prices can fall 12% a quarter when most still have their bullish
blinders on, how far might it slide when people actually get
scared?

Of course, there will always be opportunities to make money in
the market and room for innovation. Though many may be wise to
restructure their portfolios now. Those that do this well, may be
really grateful, and experience a lot of relief with where prices
are over the next 12 months.

Among those willing to step up and make bets on New York City’s
Market are
BuzzFeed. The click-bait website is making its own play in
retail, with toy store and selfie space covering 11,000 square
feet, plus basement, with an asking rent of $300 per square foot.
The store dubbed ‘Camp’ will be situated in the Flatiron District
at 110 Fifth Ave. Look out for more Flatiron development news
coming up in this month’s New York real estate report.

Investors who are considering cashing out of mature investments
have an estimated $6 trillion to reinvest in capital gains right
now. To avoid the big tax hit on those gains, many are being drawn
to the new breaks being offered for investing in real estate in new
‘Opportunity
Zones’. The Treasury Secretary estimates $100 billion in the
capital will make it into the market. With some of these new
reinvestment zones being in New York.

If you’d like more development in your neighborhood, you might
just get picked for one of the
new jails designed to replace Rikers. While no one thinks
Rikers is a good place, there don’t seem to be many hands in the
air, excited about building one of these new facilities next door
to their homes. Even despite the fact that some plans call to
combine retail shopping and rental apartments with new jail
detention centers. What do you think about this? How crazy or
genius do you think these plans are? Let us know on
Facebook!

A slightly less controversial and more welcome development on
the New York landscape are the new plans for the
JFK airport. The new $13 billion makeover that is to get
underway in 2020 will add two new terminals and tens of thousands
of square feet of retail shopping space.

While all this public spending certainly isn’t doing wonders for
our property tax bills and housing affordability, there continue to
be new developments marketing themselves as more affordable options
for renters. The 125 unit, 8 story complex in
Brownsville, Brooklyn aims to split units between low income
residents and the formerly homeless, with rents starting as low as
$462 per month. It will include recreational space, retail and
green building features.

New York City is also in the process of rolling out its new
consolidated housing rental voucher system. The goal is to
simplify, and hopefully bring some clarity for landlords and
potential tenants. Unfortunately, in the process, many who had been
receiving subsidies will be on their own to cover the rent as of
2019.

Sadly, no matter how much or little you have to spend on housing
in New York, finding a safe and healthy place can be a challenge. 5
individuals were just indicted by the Brooklyn DA for covering up
the presence of
asbestos in luxury units. They face 61 criminal charges.

Though if you are a New York city real estate investor, and have
a few dollars to throw down on a new pad, you might want to take a
look at Anthony Bourdain’s
Upper East Side apartment. Now on the market for $3.7 million,
the 5 bedroom, 3 bathroom unit is just a block from Central Park,
and obviously includes a well equipped chef’s kitchen.

For Brooklyn Real Estate News

First some sad news for Brooklyn.
Williamsburg business owners and retail landlords are
reporting an early hit from the L train shutdown fiasco. Many
report consumer sales are down 10% to 15%, with rents the following
suit. That could lead to more retail vacancies until the
construction is finished.

Of course, there could be a healthy rebound when the L line work
is complete, but a lot will depend on what’s left then, and how
much capital everyone has to execute on their desire to revive the
area and move in.

If the L train shutdown wasn’t enough of a pain for tourists and
commuters between Manhattan and Brooklyn, a new contract has just
been issued for a construction project on the
Manhattan Bridge. The $80 million renovations scheduled by the
New York City Department of Transportation will tackle cosmetic and
structural repairs on the almost 110-year-old bridge that connected
Downtown Brooklyn to Lower Manhattan. The work is expected to run
through 2021. It’s not sure how travel may be impacted, though
340,000 transport riders, 4,000 bikers, and 85,000 vehicles use the
bridge on the average weekday.

The rehabilitation of the Brooklyn Queens Expressway (BQE)
could also result in the temporary closure of the Brooklyn Heights
Promenade. That proposal has been unpopular with locals. Though
many didn’t want it when it was first opened 68 years ago.

Developers are pushing for new zoning amendments to build a
residential building on Summit Street, in the
Columbia Street Waterfront District. While it should be a
welcome addition to the neighborhood, some are worried it will open
up more development.

Over at Pacific Park,
Brooklyn’s mega-project is moving ahead with a new tower.
Altogether the project is expected to deliver 6,430 new housing
units to the neighborhood, plus retail and office. Work on the
tallest building is scheduled to begin in 2019 and will rise to
over 500 feet high.

80 Flatbush received its approval to go ahead. In addition
to residential apartments, the development also brings office space
and two new schools to the neighborhood.

One of the most severe hangovers from 2008 has been big building
sites that needed major redevelopment.Greenpoint is
finally tackling one of its own with a bold project to convert an
abandoned hospital into a variety of new housing. Among the
renovations will be adding hundreds of apartments, a shelter,
workforce development center 109 senior housing units, housing for
the formerly homeless and a community center.

In other boroughs

Despite some negativity around retail earlier this year,
Brookfield is on a mission to revive the sector with new
experimentation and investment. It is currently taking on a
“Love
Bleecker,” campaign to make Bleecker Street’s storefronts “the
most interesting urban shopping street in the world.”

FiDi’s tall building boom continues with the construction of the
crane for
77 Greenwich Street. The building will incorporate condominiums
and a grade school.

At almost 500 feet tall, Trinity Church’s office tower at
74 Trinity Place is getting its own makeover, with a new
bronze facade.

WeWork continues its big moves with the leasing of an entire
building in the
Flatiron District for its HQ by WeWork product. WeWork is
now the largest office tenant in London, DC and New York. More
additions to
WeWork’s portfolio include locations in NoMad and
Soho.

The Bronx is stepping up too, with multiple new projects filing
for permits over the past month. While Queens is enjoying new
record high property prices. Perhaps fastest growing fastest of all
is Long Island City, which is in the process of getting a
new waterfront innovation center.

For Landlords and Investors

Leasing specials have been greatly responsible for helping New
York City landlords speedily lease vacant units, and keep up rental
rates. It’s very important for investors to be alert to competitors
deals.

Among those on the market now are:

3 months free rent at 525 West 52nd Street

1 month free at 345 East 94th Street

2 months free at Forty Gold

2 months free at 33 Bond Street

1 month free at One Sixty Madison

2 months free at 325 Lafayette Avenue

According to
Curbed, your 10 biggest competitors and largest NYC landlords
are:

The City of New York

Vornado Realty Trust

SL Green

Tishman Speyer

Blackstone

Related

Columbia University

Brookfield

RXR

NYU

Airbnb is trying to fight back against a new law passed by the
City of New York demanding that under the new Homesharing
Surveillance Ordinance, services like Airbnb must hand over
extensive amounts of data about its users, and in particular
landlords. Failure of these companies to disclose any individual
listings can lead to big fines for each offense.

In conclusion...

It has been a busy year in the New York real estate market
already. Big players, buyers, and developers haven’t been shy. In
fact, we continue to see a run of aggressive new projects coming
onto the market, some with even larger price tags. Brooklyn
continues to be one of the biggest beneficiaries of this action and
is receiving much of the investment capital. Rents have been blown
around by a variety of factors, though have been kept up by
attractive leasing deals. Inventory may be growing, though there
are many economic factors which could impact the direction of the
market through the end of the year.

Well, that’s it for this month’s roundup. Look out for our other
upcoming reports, and check out the latest data on the Manhattan
and Brooklyn residential and multi-family market, and which
features and neighborhoods are yielding the best rents at NewYorkMarketReports.com.

Thanks again to our sponsors, The Ratner Team, and
SpartanRenovations.com for making these reports and delivering this
valuable information possible!

Make sure you like and share this report, and leave your
comments on this news, or any trends you think we overlooked or you
want to hear more about in the comments section.

About the Podcast

From the Ratner Team, this is the Brooklyn Made Podcast, a show about Real Estate, Entrepreneurs, Businesses and the professionals behind one of the hottest real estate markets in the world.
The Brooklyn Made Show is a one-stop shop for anyone interested in New York real estate, Entrepreneurship & Business. On the show, you'll learn valuable insights from New York's industry leaders, stay up to date with real estate & business news, follow market trends, listen to exciting local stories and much more...
Each month our show will feature local entrepreneurs, professionals, and real estate experts that we are eager for you to meet.
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